The closing process is the final hurdle before you get the keys to your new home. You may have spent years saving for a deposit or months searching for a property you like. Yet, you need to keep your excitement at bay. Otherwise, you might make a purchase you regret.
When you go through closing, you need to focus on facts, not emotions. Although, if your gut says walk away, you should probably listen.
Closing is your last chance to back out of buying a wrong property
You need to include contingency clauses in the closing paperwork so that you can walk away without penalty if you need to. Here are a few things that contingencies can protect you against:
- The mortgage lender changes its terms: While you might think you can cope with a slight rise in interest from the original offer, you need to sit down and do the sums to ensure you can. If the original figure was a stretch, it would not take much to push you over the edge. For example, if you lost your job or had to take time off work due to sickness, the loss of income could mean you default on your mortgage.
- There are repairs needed: When a survey shows up a fault, do not assume it will be cheap or straightforward to fix. Fixing issues can cost much more than you realize. Get a quote for an accurate figure.
- There are title issues: However much you want the property, if the title is not clean, do not proceed until it is. The market is full of properties that can seem a bargain, but in reality, are a problem in waiting due to ownership disputes.
Buying a home is a major investment. Investing in sound legal advice is essential to avoid the house of your dreams becoming your worst nightmare.